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The recent clouds hanging over AstraZeneca lifted slightly as analysts at UBS raised their rating on the pharmaceutical giant to neutral, from sell.
The move follows a 24 percent drop in Astra’s share price in three months, sparked by investigations in China and disappointing data from trials of an anti-cancer drug.
While UBS acknowledged the uncertainties around the Chinese scrutiny, it said the long-term outlook remains intact.
Investigation in China: Astrazeneca’s share price has fallen 24% in the last three months due to investigations in China and disappointing trial data for its cancer drug Dato-DXd
Analysts highlighted continued regulatory approvals as a sign of sustained confidence. China accounts for 13 percent of Astra’s sales but contributes less to profitability.
But analysts left their price target unchanged at 11,300 pence, sending the shares down 0.6 per cent, or 55 pence, to 9,969 pence.
Following data showing that UK inflation had risen back above the Bank of England’s target rate, the FTSE 100 closed down 0.2 per cent, or 13.95 points, at 8,085.07. , while the FTSE 250 fell 0.9 per cent, or 182.86 points, to 20,244.76.
Water companies rose led by Severn Trent, which rose 1.4 per cent, or 38 pence, to 2,727 pence, doubling its half-year profits, announcing a strong dividend increase and promising a record year for capital expenditure.
United Utilities added 0.6 per cent, or 6.05 pence, to 1,103 pence and Pennon gained 1.1 per cent, or 6 pence, to 574 pence.
A recent note from Barclays analysts warning that the sector could be hit by Thames Water’s problems was ignored.
Stock Watch – Made Tech
Strong trading has boosted digital services provider Made Tech.
At its annual general meeting, chair Joanne Lake said sales bookings for the current financial year have reached £37.5m, already surpassing the £36m recorded for the whole of the previous year.
The company, which serves the UK public sector, attributed its improved performance to strong momentum in the first half. Made Tech rose 23 per cent, or 4.25p, to 22.75p.
But negative comments from brokers hit SSP Group, which fell 1.7 per cent, or 2.7 pence, to 154.5 pence, as analysts at JP Morgan downgraded the Upper Crust owner to neutral. from overweight.
Helios Towers fell 4.9 per cent, or 5 pence, to 96.4 pence as Danish pension group ATP sold 50.6 million shares in the telecoms tower company at 94 pence each.
Results-wise, Rotork was steady at 314.6p as the engineer said its performance in the four months to the end of October was in line with expectations, with all three divisions increasing their order intake.
But Churchill China fell 15.2 per cent, or 125 pence, to 700 pence after the AIM-listed ceramics maker warned of weaker-than-expected profitability for 2024.
Also among small caps, Proton Motor Power fell 57.7 per cent, or 0.65 pence, to 0.18 pence, as the developer of fuel cells and hybrid electric fuel cell systems said it believes that the best course of action is to close the business as the funds that need to continue beyond 2024 are unlikely to materialize. It intends to delist.
Mirriad Advertising fell 41.8 per cent, or 0.11p, to 0.16p after the in-content advertising company warned of significantly reduced revenue expectations for 2024.
And James Cropper fell 10 per cent, or 25p, to 225p, as the compounds and packaging group said tough trading conditions would now mean annual profits that would only equal those of the previous year.
But on the plus side, Silver Bullet Data Services soared 8.1 per cent, or 4p, to 53.5p after the company reported record October performance and positive trading momentum.
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